This Friday, June 6, Wal-Mart will hold its Annual Shareholder Meeting in Fayetteville, Arkansas. Lehman is very bullish on Wal-Mart and hopes to hear more reassuring news about comparable store sales and ROI:
Regarding comps, we continue to believe that Wal-Mart is very well positioned to take advantage of the tough consumer spending environment and Friday could be an early look at Wal-Mart’s success in capitalising on taking share of the stimulus checks.
…fundamentally the business is a lot stronger than it was 6 to 8 months ago, especially around inventory management, which should result in lower markdowns and shrink, and improve returns.
Similarly, we expect mgmt to provide an update on the company’s ROI initiatives, particularly around CapEx. While TTM ROI in the last quarter declined by 50 bps, we believe the commitment to improving ROI remains a primary focus of Wal-Mart mgmt.